Private mortgage insurance companies could be operating under new master policies approved by Fannie Mae, Freddie Mac and state insurance regulators by mid-2014, according to the Federal Housing Finance Agency.
FHFA issued a progress report Monday afternoon on the 2013 strategic goals the regulator established for the GSEs in late 2012. The progress report notes that FHFA, working with the GSEs, has made “considerable progress” in developing new MI master policies as well as new financial standards and eligibility requirements for companies insuring GSE loans.
“The joint team has worked through a master policy for each MI and anticipates approving by the end of 2013 the submission of the master policies to state insurance regulators for approval,” the progress report says.
The new master policies will provide better assurances to lenders that insurers won’t renege on paying claims on seasoned loans that go into default.
Last Friday, NMI Holdings chief executive Brad Shuster noted the mortgage insurers must offer lenders
If the MI underwrites the loans, insurers can offer recession relief in less than 36 months.
NMI underwrites all loans that come through the delegated and non-delegated, Shuster said during a conference call with investors. “We will be able to offer rescission relief in less than 36 months on all our policies,” the CEO said.
